The Securities and Exchange Board of India will be holding its first meeting under newly appointed chairman, Tuhin Kanta Pandey later today. All eyes are on the key points likely to be discussed at the board meeting today.
According to a report on Economic Times, the SEBI board may discuss the framework for conflict of interest and easing trading norms for foreign portfolio investors (FPIs). There were some concerns of FPI pullout after a government clarification declaring that FPIs will have to pay long-term capital gains tax at 12.5% from April 1 as against the earlier rate of 10%. The FPIs segment sold equities worth over Rs 3 Lakh crore in last 5 months.
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Addressing a Business Today event on Saturday, March 22, the SEBI Chairman had highlighted that there is no point unsettling the current taxation, and the foreign portfolio investors need to “live with” the system. On taxation issue, Pandey listed out key advantages that India offers. One of the fastest growing economies in the world, he listed out that superior returns, stable policy environment and inflation being under control are some of the key advantages. He added that, “consumption is picking up, and there is an upswing in capital formation both by the government and private companies.”
SEBI to take tough stance on malpractices
Pandey, who took over as the SEBI chief three weeks ago on March 1, also said some companies are making “blatantly false disclosures” and the capital markets regulator does not “hesitate” to act against such malpractices. The bureaucrat-turned-regulator added that the Industry Standards Forum (ISF) constituted has defined the same and frequency of making the disclosures.
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“There is a need to look at volumes in the derivatives segment in a nuanced way,” Pandey added and highlighted that the notional interest can “sometimes be misleading. The metrics of measurement have to change, and SEBI will be addressing the same in a new regulation, which it will come out with.”
The market will be keenly watching out potential development on all these aspects.
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